China banks told to bail out property developers as mortgage boycotts threaten economy

Intervention comes as thousands of homebuyers refuse to make mortgage repayments in deepening property sector crisis

Chinese banks have been told to bail out struggling property developers to help them complete unfinished housing projects and head off the growing mortgage strike that threatens to seriously damage the economy.

With thousands of homebuyers banding together to refuse to keep up with mortgage instalments on unfinished apartments bought off the plan, regulators have stepped up efforts to encourage lenders to extend loans to qualified real estate projects.